Who benefits from lower interest rates?
Who is the biggest burrower?
Who do you think is going broke this time?
Don't go blaming the central bank when the government is arm-twists them!
Negative interest rates really damaged pension funds and the dollar-denominated debt worldwide is now harder to service (rise of the US dollar).
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How Higher Interest Rates Could Push Washington Toward a Federal Debt Crisis
www.manhattan-institute.org
First, it fails to acknowledge that over the next few decades—even without new legislation—the debt is already projected to reach levels that even debt doves would likely consider unsustainable. Second, this argument assumes that interest rates will forever remain near today’s low levels, thus minimizing Washington’s cost of servicing this debt.
Interest Expense on the Debt Outstanding
https://www.treasurydirect.gov/govt/reports/ir/ir_expense.htm
2021 $562,388,232,682.17
Understanding the Social Security Trust Funds
https://www.cbpp.org/research/social-security/understanding-the-social-security-trust-funds-0
The trust funds are invested in Treasury securities that are just as sound as all other U.S. government securities, held by investors around the globe and regarded as one of the world’s safest investments. (blah blah)
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Pensions invested in emerging markets funds to get higher returns because of the artificially low interest rates.
Why the push for MMT (Modern Monetary Theory) and Guarantee Basic Income?
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A 91% Asset Plunge Hits a BlackRock Fund of Sustainable EM Stocks
https://www.bloomberg.com/news/arti...hits-a-blackrock-etf-of-sustainable-em-stocks
What was once the second-biggest exchange-traded fund investing in sustainable emerging-market companies just became a shadow of its former self.
The blow comes less two years after the fund was launched with great success and the backing of Finland’s oldest pension company.
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BIS - Currency depreciation and emerging market corporate distress
The total stock of US dollar-denominated debt of non-banks outside the United States stood at $11.4 trillion according to the latest BIS estimate (BIS, 2018), of which non-banks from emerging market economies (EMEs) accounted for $3.7 tril- lion. This total of $3.7 trillion is more than double the level in 2010.
Who is the biggest burrower?
Who do you think is going broke this time?
Don't go blaming the central bank when the government is arm-twists them!
Negative interest rates really damaged pension funds and the dollar-denominated debt worldwide is now harder to service (rise of the US dollar).
---
How Higher Interest Rates Could Push Washington Toward a Federal Debt Crisis
How Higher Interest Rates Could Push Washington Toward a Federal Debt Crisis
Today’s trendy economic argument asserts that the current debt-to-GDP ratio of 100% has not harmed the economy, and therefore Congress can easily afford large new government expansions. But that argument has two fatal flaws.
www.manhattan-institute.org
First, it fails to acknowledge that over the next few decades—even without new legislation—the debt is already projected to reach levels that even debt doves would likely consider unsustainable. Second, this argument assumes that interest rates will forever remain near today’s low levels, thus minimizing Washington’s cost of servicing this debt.
Interest Expense on the Debt Outstanding
https://www.treasurydirect.gov/govt/reports/ir/ir_expense.htm
2021 $562,388,232,682.17
Understanding the Social Security Trust Funds
https://www.cbpp.org/research/social-security/understanding-the-social-security-trust-funds-0
The trust funds are invested in Treasury securities that are just as sound as all other U.S. government securities, held by investors around the globe and regarded as one of the world’s safest investments. (blah blah)
---
Pensions invested in emerging markets funds to get higher returns because of the artificially low interest rates.
Why the push for MMT (Modern Monetary Theory) and Guarantee Basic Income?
---
A 91% Asset Plunge Hits a BlackRock Fund of Sustainable EM Stocks
https://www.bloomberg.com/news/arti...hits-a-blackrock-etf-of-sustainable-em-stocks
What was once the second-biggest exchange-traded fund investing in sustainable emerging-market companies just became a shadow of its former self.
The blow comes less two years after the fund was launched with great success and the backing of Finland’s oldest pension company.
---
BIS - Currency depreciation and emerging market corporate distress
The total stock of US dollar-denominated debt of non-banks outside the United States stood at $11.4 trillion according to the latest BIS estimate (BIS, 2018), of which non-banks from emerging market economies (EMEs) accounted for $3.7 tril- lion. This total of $3.7 trillion is more than double the level in 2010.
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